Paying a Bonus to Employees
By Michael StoneWe are approaching the time of year when the subject of bonuses comes up. Your employees might be saying, “Do you suppose they will pay us a Christmas Bonus this year?”
Renegotiating the Price
By Michael StoneHow should you respond when a client wants to change the price AFTER the job has started?
Choosing a Contractor – Dealing with a Bad One
By Michael StoneThere is no way on God’s green earth I could pretend there aren’t unethical contractors.
Contract Cancellations
By Michael StoneCancellations happen, even with the best of salespeople. Clients have all kinds of reasons to cancel an agreement, and you need to be prepared.
Educating on Quality
By Michael StoneHome and building owners need to know that hiring the least expensive contractor often means compromising on quality.
Time and Material (T & M) Contracts
By Michael StoneI have read several posts on forums late …
Time and Material (T & M) Contracts Read More »
When Clients Do an End Run
By Michael StoneStay ahead of your clients. Write a detailed contract that protects you from as many unpleasant scenarios as possible, and work from written agreements with both your subcontractors and your employees.
Paying Taxes Beats Losing Money
By Michael StonePaying income tax means you’re running your business well.
Do You Have Business Interruption Insurance?
By Michael StoneBusiness Interruption Insurance is among the least understood and often most poorly written coverage.
Client Outrage
By Michael StoneReal or fake outrage can be a client’s attempt to elicit an emotional response from you to get what they want. It often puts you in the position of questioning yourself and your company, not dealing with the subject at hand.
Trucks, Phones and Language
By Michael StoneKeeping your business sharp and profitable is an ongoing process, and it’s easy to get lax about little things that can cost big money.
Underbidding a Job
By Michael Stone“I’m a contractor and underbid a house. I’m almost done and just figured that out. I can’t afford this loss. What can I do besides bankruptcy?”
Resolve Estimate Details Before Quoting
By Michael StoneHis salesperson sold a kitchen remodel without resolving some details. The homeowner insisted it wouldn’t be a big deal. It was a big deal.
Setting Priorities
By Michael StoneIf you’re a business owner, prioritizing how you spend your time is critical. There aren’t enough hours in a day to do everything that needs doing.
Be Fair to your Customers – and Yourself
By Michael StoneI talked with a young guy the other day who called about our coaching service. His company was upside down and I could tell he was hurting.
Family Fights
By Michael StoneThe topic is uncomfortable but if you’re involved in residential sales, you’ll see family disagreements. It helps to know what to do.
Expect the Best, Prepare for the Worst
By Michael StoneIf the worst happens, will those left behind be able to either carry on or close shop without your presence?
Salary and Markup
By Michael StoneOne of our clients called with cash flow problems. Leads were coming in, sales and production was good, correct number of employees for the volume of work, but no money.
Protect Your Business – Change Work Orders
By Michael StoneMichael discusses a ploy some building owners use to not pay for all of their change work orders. It happens in both residential and commercial projects.
Failing Expectations
By Michael StoneMichael shares a note from a contractor dealing with multiple mistakes he’s made in his business.
Cost-Plus, Cost+, Time and Materials, T & M
By Michael StoneA coaching client was working with a potential customer who wanted a remodeling job on a cost-plus basis instead of a fixed fee contract.
Borrowing Jacks
By Michael StoneI recently had to face what I thought would be an uncomfortable personal conversation. I fussed all morning, then went to visit the person involved.
Is it a Construction Business, or a Hobby?
By Michael StoneQuestion came from a friend the other day. He said, "Michael, how do you determine whether someone in construction has a business or a hobby?"
It’s Not For Us
By Michael StoneMichael Stone shares about a note from a contractor who initially found the Markup & Profit Revisited book “too extreme” and “not for us” – but now realizes it makes sense.
Every day, in every way, I’m getting better and better
By Michael StoneThe housing economy leaves a little to be desired. Don't count on the government to solve that problem. We have to take responsibility for and solve it ourselves.
When Business Dries Up
By Michael StoneIf sales have dropped off significantly or you’re under a stay-at-home order, here are 3 things that you need to do now for both your business and your family.
Relationship Between Sales and Owner’s Salary
By Michael StoneWe had a question come in this week from a contractor asking about how to calculate the volume of business a company needs to support the owner’s salary.
Charging a Fair Price
By Michael StoneYou can be the most ethical person in the world and if you aren’t charging enough for your work, you stand a good chance of cheating someone else.
Owning a Residential Remodeling Business isn’t Easy
By Michael StoneHe expected to make "millions". He wanted me to teach him how to do estimating "easily". That, he claimed was the only thing that he didn't know about this business.
Financial Plan for Success and Survival
By Michael StoneIf you thought you were the captain of your ship, 2020 taught otherwise.
Who Asks the Questions?
By Michael StoneMost contractors I talk to believe their neck of the woods is different. They believe their clients are more difficult to sell to than anywhere else in the country.
Rapidly Increasing Material Costs
By Michael StoneQuoting a firm fixed price is riskier when material costs are increasing rapidly, which is why your contract needs to address unexpected material cost increases.
Cleaning Up After a Low Bid Contractor
By Michael StoneThis potential client had a house built using the “lowest bid” contractor. The builder cut corners, leaving out little details like collar ties on the roof rafters.
Construction Cash Flow and Business Success
By Michael StoneConstruction cash flow is like every other business; there must be more cash flowing in than flowing out or the business won’t survive.
Plus Overhead Plus Profit
By Michael StoneA reader recently sent in a note asking for my input on this statement that a government agency attached to a "bid package" for work they want done.
Doing Work Without a Permit
By Michael StoneDoing work without a permit is a mistake. Pulling permits protects the homeowner; when a contractor doesn’t want to pull a permit, there’s always a reason.
Your Clients and Your Subs
By Michael StoneNow, if you are a subcontractor, it doesn't matter what trade, if a general contractor has hired you to work on a job your obligation is to that general contractor only.
Growing a Construction Business
By Michael StoneGrowth is inevitable when you successfully market your business and have solid business practices but growing a construction business brings a few challenges along with the blessings.